TDS on buying of property issues-Challan and late filing fees under 234E - Professionals - Taxation - TIK Share
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TDS on buying of property issues-Challan and late filing fees under 234E

Rahul Rai


It is a big issue for everyone. Deducting TDS on buying of property above Rs. 50 Lakhs. Buyer has to deduct TDS on payment to be made to seller and deposit same with government.

People are facing lot of difficulties in complying with this. Lot of people have received notice under section 234E.

I will try to address this issue in short, someone expert like CA Pulkit Sharma can throw more light on this issue.

TDS needs to be deducted at 1%.

Deductor need not to have TAN for deduction.

TDS needs to be remitted to government within 7 days of end of month in which TDS is deducted.

If payment is done in installments, TDS needs to be paid at each installment within due date.

Interest applicable if not paid withing due date.

Payment to be made using form 26QB.

Once payment is made, deductor can register at TDS site to download the form 16B. Deductor can register as tax payer on the site and TAN is not required.

Form 26QB is considered as return and fee under section 234E is applicable if not paid within time.

If you have received notice under section 234E to pay late filing fee. You have to pay it as court has validity its legality.

Manish Goel


Dear Rahul,

What is the process of paying demand under section 156 /fee under section 234E and interest.




Rahul Rai


Dear Manish,

This is answered by Pulkit in another thread we both are following.

Pay using form 280 under the code 400 and aknowledgement needs to be posted to CPC processing center.

As of now TDS department has not made any arragement for revision of form 26QB.